2024 SOHN Conference Stock Pitches

Mohammed Anjarwala, Advent Global Opportunities

Investment Idea: Carpenter Technology (CRS)

Carpenter Technology is an underappreciated business in the aerospace industry that can also be a play on the backlog of planes from Boeing and Airbus, said Mohammed Anjarwala, managing director at Advent Global Opportunities.

“We think Carpenter is one of the best ways to play the growing backlog of planes at Boeing and Airbus, as they ramp up their billing rates,” Anjarwala said.

Carpenter is a leading supplier of specialty alloys for the aerospace industry, a market with high barriers to entry given stringent testing requirements for parts, Anjarwala noted. The investor said Carpenter, one of just three suppliers, has cornered roughly 40% of the market. What’s more, the company can benefit from the rise in travel as global incomes rise.

The managing director expects the stock could trade at $200 per share, or 20 times forward P/E, around the same level of its peers. Currently, it trades a little above $70 per share, roughly at a 17 times forward P/E. The stock is up by 3.6% this year. They jumped 3% on Wednesday.